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Warsaw. The Polish Order will hit the city’s budget? Town hall calculations

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1.7 billion zlotys – according to the capital city hall, this is the amount that will be lost from the municipal treasury per year in connection with the Polish Deal government program. Officials warn that Warsaw will be forced to radical cuts in spending, which may result in, among other things, reducing the number of public transport connections, withdrawing from certain investments and reducing subsidies to education.

As reported in a press release by the capital city hall, the government program “Polish Deal” in its current shape will force painful cuts on the capital, which will cover all tasks carried out by the city. Therefore, the Mayor of Warsaw, Rafał Trzaskowski, has decided to appoint a team that will analyze the program’s effects on the capital and prepare the city to cut expenses.

– The Polish Order deprives Warsaw residents of PLN 1.7 billion from their local government budget every year. This is over a thousand zlotys less per inhabitant of the capital each year. That is why I have instructed vice-presidents and directors to urgently analyze expenses in the areas they supervise, according to the guidelines of the city treasurer, so that we know exactly what will not happen when this government attack on local government will take place – said Rafał Trzaskowski, quoted in the press release. – We will do our best to protect the most sensitive areas of our lives, such as support for the most needy, seniors, feeding children and health programs, but for example, the continuation of the city’s in-vitro program, thanks to which over a thousand Varsovians have already been born, it may turn out to be impossible – he added.


What cuts await Warsaw?

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During the meeting with journalists, Trzaskowski warned against adopting the Polish Deal as proposed by the government. – Of course, the rulers talk about some kind of funds to compensate for this. But it should not be that the government gives money at its discretion, there is only a system created assuming that 50 percent of taxes remain with local governments – said the president of the capital.

He pointed out that the compensation offered by the government would be one-off. – The government has adopted such an algorithm to hit large cities, which means that PLN 1.7 billion will be taken from Warsaw annually, and PLN 400 million will be returned to us only in the first year, and in subsequent years the compensation will be even smaller – Rafał Trzaskowski enumerated.

– I hope that this scenario will not come true and the rulers will not want to reduce the investment opportunities of the local government almost to zero – said the Mayor of Warsaw. – If it comes true, it will mean cutting all expenses in all large cities, including aid for the disabled, educational expenses, sports scholarships, support for non-governmental organizations – he mentioned.

According to the Warsaw City Hall, local governments will lose 145 billion zlotys in a decade. The revenues to the capital’s budget in 2022-2031 may be lower by over PLN 15 billion.

Polish Order – a cost for each commune

The capital city hall bases these calculations on data published since the end of July by the Association of Polish Cities. – Tax changes – undoubtedly beneficial for the majority of PIT taxpayers – are introduced by the government of Law and Justice at the expense of cities and communes, poviats and local governments. However, this is not heard in the propaganda rhetoric advertising the Polish Deal – said the Mayor of Wrocław Jacek Sutryk, quoted on the website of the Union of Polish Youth.

On the natwojkoszt.pl website prepared by the ZMP and the Union of Polish Metropolises, you can check how much the implementation of the PiS program will mean for individual municipalities. The estimate is based on the average loss in PIT, given by the Ministry of Finance in the so-called Regulatory Impact Assessment (RIA) attached to the bill.

For significant losses in the income of local government units also pointed out by the US rating agency Fitch.

Main photo source: TVN24

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